DC Poverty Rate Dips Down

Hard on the results of the Census Bureau’s latest annual Current Population Survey supplement come the vastly more detailed results of its American Community Survey. As the headline says, they indicate what seems a drop in the overall poverty rate for the District of Columbia — down from 18.9% in 2013 to 17.7% last year.*

In human terms, this means that roughly 5,120 fewer District residents lived in poverty, as the Census Bureau’s official measure defines it.

At the same time, fewer residents lived in deep poverty, i.e., with household incomes no greater than 50% of the applicable poverty threshold — 9.1%, as compared to 10.3% in 2013.

These figures are obviously good news. But they’re hardly good enough to pop a champagne cork for. Several major reasons we should remain very concerned.

First, as I’ve said before, the poverty thresholds are extraordinarily low. A single parent and her two children, for example, were counted as poor only if the family’s pre-tax cash income was less than $19,073 — this in a city where the family’s basic needs cost roughly $104,000. Perhaps even more, as the DC Fiscal Policy Institute has noted.

Second, the District’s poverty rate is still high, even comparatively. The national poverty rate, according to the ACS, was 15.5% last year. The District’s poverty rate also exceeds all but 11 state-level rates.

Third, the poverty rate for children in the District is far higher than the rate for the population as a whole — 26% or more than one in four residents under 18 years old. The deep poverty rate for children is also higher — 12.4%.

True, these rates are lower than in 2013, when they were 27.2% and 16.2%. But we’ve got more children in the District now. So the rate dips — for plain vanilla poverty in particular — reflect less progress than they seem to.

Fourth, we still have large gaps among major race/ethnicity groups in the District — one, though far from the only sign of persistent income inequality, rooted in discriminatory policies and practices. For example:

  • The new poverty rate for blacks is 25.9%, as compared to 6.9% for non-Hispanic whites.
  • 12.7% of blacks lived in deep poverty, while only 4.8% of non-Hispanic whites did.
  • The rates for Hispanics fall in between, as they have in the past — 16.9% and 7.5%.

We find the same sort of divide in household incomes. The median for non-Hispanic white households was $117,134 — $57,512 higher than their median nationwide. The median household income for black residents was barely more than a third of what non-Hispanic whites here had to live on — $40,739.

For the poverty rates themselves, we can find some ready explanations in other ACS figures. For example, the poverty rate for District residents who were at least 25 years old and had less than a high school diploma or the equivalent was 33.7%, as compared to 5.8% for their counterparts with at least a four-year college degree.

Only a small fraction of working-age (16-64 year-old) residents who worked full-time, year round were officially poor — 2.1% — while 45.9% who lived in poverty didn’t work (for pay) at all.

They presumably include residents too disabled to work and dependent on Supplemental Security Income benefits. These, at a maximum, left a single individual about $3,660 below the poverty threshold.

But that leaves 23.4% who worked for at least part of the year, less than full time or both. They were not, by any means, all workers who chose part-time and/or temporary work, as a recent report by DCFPI and partners tells us.

The report includes some policy recommendations to help low-wage hourly workers who are now jerked around — and economically disadvantaged — by unpredictable, erratic work schedules. One can readily find other policy proposals that would, in various ways, significantly reduce poverty rates in the District and nationwide.

Though the ACS gives us new numbers, neither the story they tell nor the solutions they imply are new. Still worth knowing how the prosperity we witness in our gentrifying neighborhoods, as well as our traditionally upper-income havens has egregiously failed to reach so many District residents.

* All the ACS tables include margins of error, i.e., how much the raw numbers and percents could be too high or too low. For readability, I’m reporting both as given. However, the high side of the margin for the overall rate could mean no change from 2013.

 

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